Deepwater Asset Management LLC Invests $5.92 Million in Rambus, Inc. $RMBS

Key Points

• Deepwater Asset Management purchased 44,634 Rambus shares worth approximately $5.92 million, making RMBS about 2.7% of its portfolio. Institutional investors collectively own 88.54% of the company.
• Rambus insiders sold 62,914 shares worth roughly $9.72 million over the past three months, while corporate insiders retain just 0.75% of outstanding shares.
• Rambus reported quarterly EPS of $0.77 and revenue of $207.39 million, exceeding analyst estimates and marking 20.4% year-over-year revenue growth. Despite the stock opening at $93.71 after a 6.9% decline, analysts maintain a “Moderate Buy” consensus with a $139.78 target price.

Deepwater Asset Management LLC purchased a new stake in shares of Rambus, Inc. (NASDAQ:RMBS - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 44,634 shares of the semiconductor company's stock, valued at approximately $5,925,000. Rambus accounts for about 2.7% of Deepwater Asset Management LLC's holdings, making the stock its 25th largest position.

Several other institutional investors and hedge funds have also recently made changes to their positions in the company. BlackRock Inc. bought a new position in Rambus during the 2nd quarter worth about $1,853,645,000. Invesco Ltd. boosted its stake in shares of Rambus by 70.6% during the fourth quarter. Invesco Ltd. now owns 4,148,653 shares of the semiconductor company's stock valued at $381,220,000 after purchasing an additional 1,716,621 shares in the last quarter. Norges Bank bought a new position in shares of Rambus during the fourth quarter valued at approximately $156,356,000. Bank of America Corp DE increased its holdings in Rambus by 196.0% during the third quarter. Bank of America Corp DE now owns 1,550,665 shares of the semiconductor company's stock valued at $161,579,000 after buying an additional 1,026,776 shares during the period. Finally, Bessemer Group Inc. raised its stake in Rambus by 1,009.5% in the first quarter. Bessemer Group Inc. now owns 1,039,905 shares of the semiconductor company's stock worth $89,463,000 after buying an additional 946,177 shares in the last quarter. 88.54% of the stock is currently owned by institutional investors.

Insider Activity at Rambus

In other news, Director Necip Sayiner sold 5,000 shares of Rambus stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $170.15, for a total transaction of $850,750.00. Following the completion of the sale, the director directly owned 18,223 shares in the company, valued at approximately $3,100,643.45. The trade was a 21.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Xianzhi Sean Fan sold 37,914 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $151.69, for a total transaction of $5,751,174.66. Following the sale, the executive vice president directly owned 168,358 shares in the company, valued at $25,538,225.02. This trade represents a 18.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 62,914 shares of company stock worth $9,724,775. Corporate insiders own 0.75% of the company's stock.

Rambus Stock Down 6.9%

RMBS opened at $93.71 on Wednesday. Rambus, Inc. has a 52-week low of $67.15 and a 52-week high of $174.10. The company has a market cap of $10.16 billion, a P/E ratio of 42.99 and a beta of 1.88. The firm's 50-day moving average price is $111.17 and its 200-day moving average price is $113.08.

Rambus (NASDAQ:RMBS - Get Free Report) last released its earnings results on Monday, July 27th. The semiconductor company reported $0.77 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.05. The company had revenue of $207.39 million during the quarter, compared to analysts' expectations of $199.30 million. Rambus had a net margin of 31.69% and a return on equity of 17.89%. Rambus's revenue for the quarter was up 20.4% on a year-over-year basis. During the same period last year, the business earned $0.53 EPS. On average, research analysts anticipate that Rambus, Inc. will post 2.52 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the company. Weiss Ratings restated a "hold (c+)" rating on shares of Rambus in a report on Friday, June 5th. Evercore reissued an "outperform" rating and issued a $172.00 price target on shares of Rambus in a research report on Tuesday, April 28th. Glj Research set a $165.00 price objective on Rambus in a research note on Tuesday, July 28th. Benchmark reaffirmed a "buy" rating on shares of Rambus in a research report on Tuesday, July 28th. Finally, Jefferies Financial Group boosted their target price on shares of Rambus from $120.00 to $145.00 and gave the stock a "buy" rating in a report on Tuesday, April 28th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, Rambus currently has an average rating of "Moderate Buy" and a consensus price target of $139.78.

Rambus Profile

Rambus Inc is a technology licensing company specializing in semiconductor and system-level interface solutions. Founded in 1990 by Stanford University researchers Mike Farmwald and Mark Horowitz, Rambus established its headquarters in Sunnyvale, California. The company initially gained prominence by developing high-speed DRAM interface technology and securing a broad patent portfolio covering memory architecture, data signaling and power management innovations.

Today, Rambus licenses its proprietary intellectual property (IP) to semiconductor companies, original equipment manufacturers (OEMs) and system integrators worldwide.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source